On February 4, 2013, the California Supreme Court held in Apple Inc. v. Superior Court (Krescent) that the Song-Beverly Credit Card Act’s prohibition against recording customers’ personal identification information as a condition of credit card purchases does not apply to online purchases in which the product is downloaded. This decision will provide significant relief to online retailers, who otherwise could have been exposed to up to $1,000 in statutory penalties each time a customer was required to enter an address or telephone number in order to complete a downloadable online purchase.
For now, retailers can rest assured that online transactions involving downloadable products do not fall within the scope of the Credit Card Act. However, the Court invited the Legislature “to revisit the issue of consumer privacy and fraud prevention in online credit card transactions,” while other questions, such as the application of the Credit Card Act to online transactions not involving downloadable products, still remain open.
Please see full article below for more information.
Firefox recommends the PDF Plugin for Mac OS X for viewing PDF documents in your browser.
We can also show you Legal Updates using the Google Viewer; however, you will need to be logged into Google Docs to view them.
Please choose one of the above to proceed!
LOADING PDF: If there are any problems, click here to download the file.
Topics: Apple, Credit Card Act, Credit Cards, Electronically Downloaded Products, Internet Retailers, Personally Identifiable Information, Song-Beverly Credit Card Act, ZIP Codes
Commercial Law & Contracts Updates, Consumer Protection Updates, Privacy Updates, Science, Computers & Technology Updates
DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
© Venable LLP | Attorney Advertising